Interactive Brokers Q4 EPS Soars 27.5%, Revenues Jump 18.5%, DARTs Up 29.7%
Interactive Brokers posted Q4 adjusted EPS of $0.65, beating estimates by $0.13 and rising 27.5% year-over-year on revenues of $1.64 billion, up 18.5% and supported by a 1.2% decline in operating expenses. Daily average revenue trades climbed 29.7% to 4.04 million and client accounts grew 31.8% to 4.399 million.
1. Earnings Highlights
Interactive Brokers reported adjusted Q4 earnings per share of $0.65, surpassing consensus by $0.13 and marking a 27.5% year-over-year increase. GAAP net revenues rose 18.5% to $1.64 billion while operating expenses fell 1.2%, supported by lower clearing and distribution fees. Daily average revenue trades reached 4.04 million, up 29.7%, and customer accounts grew to 4.399 million, a 31.8% increase.
2. Balance Sheet and Capital Position
As of December 31, cash and cash equivalents, including regulatory reserves, totaled $81.8 billion compared with $68.1 billion a year earlier. Total assets expanded 35% year-over-year to $203.2 billion, while shareholders’ equity increased 23.5% to $20.5 billion, reflecting strong retained earnings and capital retention.
3. Outlook and Estimate Revisions
Management estimates a 25-basis-point cut in the Fed Funds rate would reduce annual net interest income by $77 million, with non-USD benchmark rate cuts trimming another $31 million. Analysts have raised 2026 earnings estimates over the past month, driven by expectations of sustained margin expansion and higher trade volumes.